Have you noticed the parade of big names coming out warning of a coming financial calamity? It is pretty steady now that big names in finance show up on television or in a news report and say, "Well, jeez, a storm is coming and it will be awful". A recent man warning of doom is Paul Singer. If his name sounds familiar, I have written of him before. Over a year ago, I wrote about Singer's efforts to use his money to make the GOP pro-gay. He is a FIRE economy elite with billions. Comapred to the other masters of the universe proclaiming doom, Singer has described the play: short long term claims on paper money.
The big short prior to the financial crisis was shorting subprime mortgages. This is an even bigger short. This is shorting government bonds in the West. Zero Hedge lays out the specifics. This play goes to the heart of the problem and is two pronged. If you short government debt with their printing presses, you would be paid in a currency that would become worthless. You are right, but you do not get paid. In the meantime, if you are shorting bonds that have negative yields, you actually have a positive carry. Singer's play would mean that you need to short the money system and prepare for the next. As Zero Hedge closes out their giant post, there is one alternative to paper money claims that is used for measuring wealth in a financial system. Gold. Singer's approach becomes a paired trade in essence, short bonds and long gold. Bill Cara also called this the trade of a generation almost a decade ago, but he was too soon. Timing is everything.
I am a bit biased as I am a fan of gold and have been for years. If a skeptic, just look at it this way. Every central bank that can do so is buying gold like a major change is coming or they are asking for their gold to be repatriated back home for safe keeping. Now big names in finance are discussing the need for gold. Large institutions and people are preparing for the next stage, and if they are revealing it to you now, they have been doing it for much longer. Our central banks will fear deflation, but they will print to make sure it never happens. Sadly, the printing will accelerate and make that paper worth less and less. Be prepared.